Construction payment management system and method with draw notification features

ABSTRACT

Systems and method for managing a construction payment process. When instructions are executed by a processor, an application server determines a date on which a draw is to occur for a construction project and generates a notification. The notification includes an indication of the date on which the draw will occur and an invitation to initiate a request for payment to be included in the draw. The application server then determines a plurality of participants associated with the construction project to be included in the draw and transmits the notification to the determined plurality of participants. The application server initiates the draw on the determined date and at least one participant of the determined plurality of participants receives a payment in the draw.

RELATED APPLICATIONS

The present patent application is a continuation of co-pending U.S.patent application Ser. No. 13/440,740 filed Apr. 5, 2012, which is acontinuation of U.S. patent application Ser. No. 12/793,738 filed Jun.4, 2010, which is a continuation of U.S. patent application Ser. No.11/973,852 filed Oct. 10, 2007, which is a continuation of U.S. patentapplication Ser. No. 11/827,389 filed on Jul. 11, 2007, which is acontinuation of U.S. patent application Ser. No. 11/484,786 filed Jul.11, 2006, which is a continuation of U.S. patent application Ser. No.11/032,699 filed on Jan. 10, 2005, which claims priority to U.S.Provisional Patent Application Ser. No. 60/583,782 filed Jun. 29, 2004,the entire contents of which are all herein incorporated by reference.

BACKGROUND OF THE INVENTION

Residential and commercial construction projects require severalorganizations to communicate with one another in order to distributepayments. A conventional construction payment management process beginswith a verbal notification that a draw from the construction loan or theproperty owner's account will take place. The general contractor (GC) ofthe construction project notifies subcontractors (or any other person,firm, or corporation engaged by the GC, such as material suppliers) ofthe draw by telephone, fax, or at a meeting. The subcontractors prepareinvoices and send them to the GC by mail, fax, hand delivery, or at ameeting with the GC. The GC and the subcontractors often must negotiatethe final invoice dollar amount by telephone or at meetings. The GCconfirms the invoices, enters the details into a GC project accountingsystem, and prepares its own invoice.

Once the invoices are complete, the GC also manually prepares a swornstatement. In the sworn statement, the GC confirms that thesubcontractors engaged by the GC have performed particular services inthe construction or repair of the property. In the sworn statement, theGC also confirms the dollar amount entitled to each subcontractor.

The GC forwards the executed sworn statement to the title company andthe construction loan lender and/or the property owner. The lender, theproperty owner, or the title company notifies an inspector that aninspection of the property must be performed and sends the swornstatement to the inspector. The inspector assembles the previousinspection reports for the property. The inspector performs the newinspection and manually prepares an inspection report. The inspectordistributes the inspection report to the lender, the property owner,and/or the title company by fax, mail, or hand delivery.

The lender, the property owner, and/or the title company receives thesworn statement and the inspection report by mail, fax, hand delivery,or at a meeting with the GC and/or the inspector. The lender, theproperty owner, and/or the title company must retrieve the previous drawand project documentation. The lender, the property owner, and/or thetitle company often must negotiate the payment amounts and projectdetails with the GC by telephone, fax, or at a meeting. The lender, theproperty owner, and/or the title company approves the sworn statementand communicates the approval by telephone, fax, or at a meeting. Thelender or the property owner then approves the disbursement of thedollar amount specified in the sworn statement.

The construction loan lender or the property owner's bank generallytransfers the funds necessary to pay all of the subcontractors to anescrow account. Often the title company then disburses the funds fromthe escrow account to the GC. The GC and/or the title company prepareschecks for the subcontractors. At this time, the subcontractorsgenerally complete lien waivers for the previous draw of funds from theconstruction loan or for the work completed during the previous month.As a result, the lien waivers for the current draw or the current monthare not actually released until a subsequent draw is made from theconstruction loan or until the next month. In addition, subcontractorsmay have their own subcontractors that they must pay after receivingpayment from the GC.

The conventional construction payment process can take 90 days or longerfrom the date of the verbal draw notification to the date thesubcontractors actually receive payment. The conventional constructionpayment process generally involves unreliable verbal notification ofevents upon which movement of the process is contingent. For example, ifone subcontractor is unavailable to prepare an invoice or submit a lienwaiver, the payment process for all of the other subcontractors can bedelayed.

The conventional construction payment process also involves enormousamounts of data entry. For example, for a single large constructionproject, a GC often must enter hundreds of invoices into its accountingsystem each month. Also, a GC must gather hundreds of lien waivers eachmonth. In addition, a GC must prepare, approve, sign, and distributehundreds of checks to subcontractors each month. Further, a GC muststore all of the paper documents collected during each draw process. Thetiming of the draw notifications, the approvals, and the exchanges oflien waivers for payment requires hundreds of faxes, phone calls, andmeetings each month.

SUMMARY OF THE INVENTION

In one embodiment, the invention provides a construction paymentmanagement system including an application server. The applicationserver has a processor and a computer-readable memory storinginstructions. When the instructions are executed by the processor, theapplication server determines a date on which a draw is to occur for aconstruction project and generates a notification. The notificationincludes an indication of the date on which the draw will occur and aninvitation to initiate a request for payment to be included in the draw.The application server then determines a plurality of participantsassociated with the construction project to be included in the draw andtransmits the notification to the determined plurality of participants.The application server initiates the draw on the determined date and atleast one participant of the determined plurality of participantsreceives a payment in the draw.

In some embodiments, the application server determines the date of thedraw based on an input received from one of the participants associatedwith the construction project. In other embodiments, the applicationsserver automatically schedules periodic draws during the course of theconstruction project.

In another embodiment, the invention provides a method of managing apayment process for a construction project. A date on which a draw is tooccur is determined and a notification of the draw is electronicallygenerated. The notification includes an indication of the date on whichthe draw will occur and an invitation to initiate a request for paymentto be included in the draw. A plurality of participant associated withthe construction project is identified to receive the notification. Thenotification is transmitted and the draw is electronically initiated. Atleast one of the plurality of notified participants receives a paymentin the draw.

In another embodiment, the invention provides a computer-implementedmethod of reconciling a primary budget for a construction project. Oneembodiment of the invention includes generating a primary budget for theconstruction project and assigning a first primary budget line item fromthe primary budget to a participant. A secondary budget is thengenerated for the primary budget line item. Before administering a drawthat includes a payment to the participant, the computer-implementedmethod ensures that the total sum of the budget amounts in the secondarybudget is consistent with the budget amount for the primary budget lineitem. In some embodiments, the secondary budget is consistent when thetotal sum of the budget amounts is less than the primary budget lineitem. In some embodiments, the secondary budget is consistent when thetotal sum of the budget amounts is equal to the primary budget lineitem.

In another embodiment, the invention provides a construction paymentmanagement system comprising a processor and a computer readable memory.The computer readable memory stores instructions that, when executed bythe processor, cause the construction payment management system togenerate a primary budget, assign a primary budget line item to aparticipant, generate a secondary budget corresponding to the assignedprimary budget line item, and administers a draw to the participant onlywhen the total sum of the budget amounts of the secondary budget lineitems is consistent with the budget amount of the primary budget lineitem.

In some embodiments, participants are only able to submit invoicesrequesting payment when the secondary budget for an assigned line itemis consistent with the primary budget line item. In some embodiments, ifa participant has been assigned multiple primary budget line items, theparticipant is only able to submit invoices requesting payment when thesecondary budgets for all assigned primary budget line items areconsistent with the respective primary budget line items.

Other aspects of the invention will become apparent by consideration ofthe detailed description and the accompanying drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a schematic illustration of a construction payment managementsystem according to one embodiment of the invention.

FIG. 2 is a schematic illustration of construction payment managementprocesses that can be performed using the system of FIG. 1.

FIG. 3 is a schematic illustration of a manage project process.

FIG. 4 is a schematic illustration of a manage organization process.

FIG. 5 is a schematic illustration of a manage draw process.

FIG. 6 is a schematic illustration of a manage change order process.

FIG. 7 is a schematic illustration of manage system environment tasks.

FIG. 8 is a schematic illustration of a create organization process.

FIG. 9 is an illustration of a create organization form.

FIG. 10 is an illustration of an update user system notification.

FIG. 11 is an illustration of a system notification.

FIG. 12 is an illustration of an edit organization form.

FIG. 13 is an illustration of an activate organization notification.

FIG. 14 is an illustration of an activate organization form.

FIG. 15 is an illustration of an organization activated notification.

FIG. 16 is an illustration of an organization deactivation notification.

FIG. 17 is a schematic illustration of a maintain organization process.

FIG. 18 is an illustration of a view organization screen.

FIG. 19 is an illustration of a browse organization screen.

FIG. 20 is an illustration of an edit organization form.

FIG. 21 is an illustration of an organization profile updatednotification.

FIG. 22 is a schematic illustration of a create user process.

FIG. 23 is an illustration of a create user form.

FIG. 24 is an illustration of an update user profile notification.

FIG. 25 is a schematic illustration of a maintain user process.

FIG. 26 is an illustration of a view user screen.

FIG. 27 is an illustration of a browse users screen.

FIG. 28 is an illustration of an edit user form.

FIG. 29 is an illustration of a user profile updated notification.

FIG. 30 is a schematic illustration of a create project process.

FIGS. 31 and 32 are illustrations of a create project form.

FIG. 33 is an illustration of a project created notification.

FIG. 34 is an illustration of a project user access screen.

FIG. 35 is an illustration of a project responsibilities notification.

FIG. 36 is a schematic illustration of a maintain budget process.

FIG. 37 is an illustration of an enter top level budget form.

FIG. 38 is an illustration of an enter draw dates form.

FIG. 39 is an illustration of an invoice code setup form.

FIG. 40 is an illustration of an assign invoice codes form.

FIG. 41 is an illustration of an accept project notification.

FIG. 42 is an illustration of an accept project form.

FIG. 43 is an illustration of a project declined notification.

FIG. 44 is an illustration of a project accepted notification.

FIG. 45 is an illustration of a project home page.

FIG. 46 is an illustration of an add users notification.

FIG. 47 is an illustration of a project user access form.

FIG. 48 is an illustration of a project responsibilities notification.

FIG. 49 is an illustration of a project budget view screen.

FIG. 50 is an illustration of an enter budget form.

FIG. 51 is a schematic illustration of a terminate budget item process.

FIG. 52 is an illustration of an enter top level budget form.

FIG. 53 is an illustration of a terminate budget screen.

FIG. 54 is a schematic illustration of a draw process.

FIG. 55 is an illustration of a create scheduled draw notification.

FIG. 56 is an illustration of an initiate draw form.

FIG. 57 is an illustration of an enter invoice notification.

FIG. 58 is an illustration of an enter invoice form.

FIG. 59 is an illustration of a sign invoice notification.

FIG. 60 is an illustration of a sign invoice form.

FIG. 61 is an illustration of an invoice details updated notification.

FIG. 62 is an illustration of a view pending draw request screen.

FIG. 63 is an illustration of an invoice details rejected notification.

FIG. 64 is an illustration of an invoice not included in the drawnotification.

FIG. 65 is an illustration of an automatically-generated invoice form.

FIG. 66 is an illustration of a sworn statement form.

FIG. 67 is an illustration of a make funds available notification.

FIG. 68 is an illustration of a view draw request screen.

FIG. 69 is an illustration of a sign lien waiver notification.

FIG. 70 is an illustration of a lien waiver form.

FIG. 71 is an illustration of a lien waiver signed notification.

FIG. 72 is an illustration of a view draw request screen.

FIG. 73 is an illustration of an all lien waivers signed notification.

FIG. 74 is an illustration of a view draw request form.

FIG. 75 is an illustration of a payment disbursed notification.

FIG. 76 is a schematic illustration of maintain system screens tasks.

FIG. 77 is an illustration of a maintain phase codes form.

FIG. 78 is an illustration of an administration user login screen.

FIG. 79 is an illustration of an add/edit picklist form.

FIG. 80 is an illustration of an add/edit organization role form.

FIG. 81 is an illustration of a default/configure settings form.

FIG. 82 is an illustration of an edit notification form.

FIG. 83 is an illustration of a default/configure process form.

FIG. 84 is an illustration of an add/edit user role form.

FIG. 85 is a schematic illustration of perform inspections processes andrelated tasks.

FIG. 86 is an illustration of a prepare to conduct inspectionnotification.

FIG. 87 is an illustration of an inspection required notification.

FIG. 88 is an illustration of an inspection required screen.

FIG. 89 is an illustration of an enter inspection report notification.

FIG. 90 is an illustration of an enter inspection report form.

FIG. 91 is an illustration of an inspection report form screen.

FIG. 92 is an illustration of an inspection report failed notification.

FIG. 93 is an illustration of a view previous inspections screen.

FIG. 94 is a schematic illustration of an approve draw request process.

FIG. 95 is an illustration of an Authorize Draw Request One form.

FIG. 96 is an illustration of an Authorize Draw Request One declinednotification.

FIG. 97 is an illustration of an inspection confirmed notification.

FIG. 98 is an illustration of a payment details modified notification.

FIG. 99 is an illustration of an inspection authorized notification.

FIG. 100 is an illustration of an Authorize Draw Request Twonotification.

FIG. 101 is an illustration of an Authorize Draw Request Two form.

FIG. 102 is an illustration of an Authorize Draw Request Two declinednotification.

FIG. 103 is an illustration of an Authorize Draw Request Two approvednotification.

FIG. 104 is an illustration of an issue lien waiver notification.

FIG. 105 is a schematic illustration of a change request process.

FIG. 106 is an illustration of a change request form.

FIG. 107 is an illustration of a change request issued notification.

FIG. 108 is an illustration of an authorize change request notification.

FIG. 109 is a schematic illustration of a process change requestprocess.

FIG. 110 is an illustration of a view pending change request screen.

FIG. 111 is an illustration of an authorize change request form.

FIG. 112 is an illustration of a change request declined notification.

FIG. 113 is an illustration of a change request approved notification.

FIG. 114 is a schematic illustration of a change project participantprocess.

FIG. 115 is an illustration of a change participant screen.

FIG. 116 is an illustration of a check participant delete screen.

FIG. 117 is an illustration of a change affidavit screen.

FIG. 118 is a schematic illustration of maintain project screen tasks.

FIG. 119 is an illustration of a project profile form.

FIG. 120 is an illustration of a project contact information screen.

FIG. 121 is an illustration of a project information screen.

FIG. 122 is an illustration of a close project screen.

FIG. 123 is a schematic illustration of manage access screen tasks.

FIG. 124 is an illustration of a log in screen.

FIG. 125 is an illustration of a log out screen.

FIG. 126 is an illustration of a project home page screen.

FIG. 127 is an illustration of a reset password screen.

FIG. 128 is an illustration of a main screen for a particular user.

FIG. 129 is an illustration of a browse projects screen.

FIG. 130 is an illustration of a forgot password screen.

FIG. 131 is an illustration of a your password notification.

FIG. 132 is a schematic illustration of a manage message screensprocess.

FIG. 133 is an illustration of a view messages screen.

FIG. 134 is an illustration of a specific message being viewed by auser.

FIG. 135 is an illustration of a create/send messages screen.

FIG. 136 is an illustration of a status message screen.

FIGS. 137-153 are flow charts illustrating a method of managing aconstruction payment process according to another embodiment of theinvention.

FIGS. 154-179 are input/output diagrams illustrating a method ofmanaging a construction payment process according to still anotherembodiment of the invention.

DETAILED DESCRIPTION

Before any embodiments of the invention are explained in detail, it isto be understood that the invention is not limited in its application tothe details of construction and the arrangement of components set forthin the following description or illustrated in the following drawings.The invention is capable of other embodiments and of being practiced orof being carried out in various ways. Also, it is to be understood thatthe phraseology and terminology used herein is for the purpose ofdescription and should not be regarded as limited. The use of“including,” “comprising” or “having” and variations thereof herein ismeant to encompass the items listed thereafter and equivalents thereofas well as additional items. The terms “mounted,” “connected” and“coupled” are used broadly and encompass both direct and indirectmounting, connecting and coupling. Further, “connected” and “coupled”are not restricted to physical or mechanical connections or couplings,and can include electrical connections or couplings, whether direct orindirect. Also, electronic communications and notifications may beperformed using any known means including direct connections, wirelessconnections, etc.

It should be noted that a plurality of hardware and software baseddevices, as well as a plurality of different structural components maybe utilized to implement the invention. Furthermore, and as described insubsequent paragraphs, the specific configurations illustrated in thedrawings are intended to exemplify embodiments of the invention and thatother alternative configurations are possible.

FIG. 1 illustrates a construction payment management system (CPMS) 10according to one embodiment of the invention. The CPMS 10 can include anapplication server 12, a database server 14, an application logic module16, a web server 18, a network 20 (such as the Internet or othernetworks individually or in combination with the Internet), averification service 22, participating organizations or individuals 24(hereinafter “participant” or “organization”), and a payment system 26.The payment system 26 can include an automated clearing house (ACH)system, a wire transfer system, a debit card system, a credit cardsystem, or any other suitable electronic funds transfer (EFT) system.

The application server 12 can store and provide access to a projectmodule 28, a form-handling module 30, a permissions and authorizationsengine 32, a database management system 34, a budget module 36, anaccess manager 38, a notifications manager 40, an organization module42, a draw module 44, a contracting module 46, a change order module 48,a user module 50, a system environment manager 52, and an electronicholding bin/escrow 54. The draw module 44 can include a core module 56,an inspection module 58, and a draw approval module 60. The systemenvironment manager 52 can include a report generator 62, a help module64, and a system maintenance module 66. The electronic holdingbin/escrow 54 can store one or more lien waivers 68. It should beunderstood that the components of the application server 12 could becombined in a different manner than as shown and described with respectto FIG. 1. The software used to code the various modules, managers, andengines of the application server 12 can be combined or separated in anysuitable manner and can be stored and accessed in any suitable manner.

The application server 12 can be connected to the database server 14,the application logic module 16, and the verification service 22.However, in some embodiments, the verification service 22 may only beconnected to the network 20. The application logic module 16 can beconnected to the web server 18 or, in some embodiments, directly to thenetwork 20. The web server 18 can be connected to the network 20.

The participants 24 can include a property owner 70 (and/or the owner'srepresentative 72), a general contractor (GC) 74, an inspector 76, oneor more subcontractors (Subcontractor A 78, Subcontractor B 80, etc.),one or more material suppliers 82, one or more lenders 84 (and/or one ormore loan officers 86), one or more title companies 86, and one or morearchitects 88. The participants 24 can also include one or more interiordesigners (and/or furniture manufacturers) and one or more real estateowners (i.e., the land owner who sells the construction site to theproperty owner 70). The participants 24 can include organizations and/orindividuals that are either considered “above the line” (i.e., higher inthe construction process than the GC) or “below the line” (i.e.,employed by the GC). Participants 24 above the line can include lenders,architects, interior designers, property owners, property owners'representatives, title companies, and real estate owners. Participants24 below the line can include subcontractors and material suppliers. TheCPMS 10 can be used to facilitate the construction payment processbetween any of these types of participants 24, whether above or belowthe line of the GC. The CPMS 10 is often described herein as being usedto facilitate payment between a GC and subcontractors. However, itshould be understood that the CPMS 10 can be used to facilitate paymentbetween any type of participant, not only between a GC andsubcontractors.

In addition to classifying participants as being above or below the lineof the GC, costs associated with the construction process can beclassified as “soft” costs or “hard” costs. Soft costs can includeinspector fees, architect fees, interior design fees, title companyfees, permit fees, utility bills for the property during theconstruction process, furniture costs, audio/visual equipment,computers, etc. Hard costs can include all the costs incurred by theorganizations or individuals employed by the GC, including all costs forsubcontractors and material suppliers employed by the GC. Eachconstruction project can include an overall budget (from the owner'sperspective) that includes all of the soft and hard costs. Eachconstruction project can also include a GC budget. The CPMS 10 can beused to facilitate all the payments made within the overall budget andthe GC budget. However, in some embodiments of the invention, the CPMS10 can be used only to facilitate payment of the hard costs managed bythe GC (i.e., only the GC budget). It should be understood by one ofordinary skill in the art that the CPMS 10 can be used to facilitatepayment for only hard costs by the GC, only soft costs by participantsabove the line of the GC, or a combination of hard and soft costs byparticipants above and below the line of the GC. The CPMS 10 is oftendescribed herein with respect to hard costs, but can also be used forsoft costs or a combination of hard and soft costs.

Each one of the participants 24 can be connected to the payment system26; however, some of the participants 24 may not be connected to thepayment system 26 in some embodiments of the invention. In someembodiments, the payment system 26 can include an ACH system with one ormore originating depository financial institutions (ODFI) and one ormore receiving depository financial institutions (RDFI).

The participants 24 can access the application server 12 in order to usethe various modules, managers, and engines to perform constructionpayment management methods according to several embodiments of theinvention.

In some embodiments, the CPMS 10 can connect all project participants toa substantially uniform, web-based, real-time system; can organize thebudgeting for the construction project; can facilitate the electronicsubmission and approval of invoices; and can automate and streamline thepayment and lien waiver release process through the use of electronicpayments and production of the matching electronic lien waiver releases.

While there can be variations in details (for instance, in a publiclyfinanced project, initiation and oversight of the project might be doneby a surety bond issuer, rather than a bank), one embodiment of the CPMS10 can be used as follows. A loan officer can sign on to the Internetand enter the CPMS web site. After a security clearance, the loanofficer can enter the lender's portfolio and access a series of screensto create a new project by entering all of the project details. Theproject details can include details of the participants for eachproject, for example, the owner, architect, general contractor and titleinsurance company. Each participant can receive email notification oftheir involvement in the project and can verify their profile details.The GC can add subcontractors and material suppliers. The subcontractorsand material suppliers can receive notification that they have beenadded to the project and can go through the security and verificationprocess. The GC can select the number of draws and the draw dates forthe project. The CPMS 10 can notify participants of a pending draw datein real-time. Each participant can complete their draw request form byentering their material and labor invoice details. The GC can review thedraw requests and authorize them, and the CPMS 10 can generate the swornstatement. A series of project site inspections, approvals, completionof lien waivers, generation of statements, etc. can follow, all of whichcan be prompted by the CPMS 10 through email notifications in real-time.Once all forms have been completed and verified, the CPMS 10 canfacilitate payments. The payments can be deposited directly into aparticipant's banking account via an electronic payment system. Thisprocess can be repeated for all draws. The project budget can be kept inbalance through the completion of pay outs, collection of lien waivers,and approved inspections. Project progress can be tracked through theCPMS 10 via graphical progress indicators.

The CPMS 10 can include the following features: one-time registration ofparticipating organizations into the CPMS 10; real-time notification ofa draw; automated invoice generation; automated sworn statementgeneration; automated lien waiver generation; coordinated payment/lienwaiver release; and direct distribution of funds to participatingorganizations.

The one-time registration of participating organizations into the CPMS10 can lower the cost of participating in the service because aparticipant has to register only once. The one time registration alsolowers the number of potential errors because the entry of registrationinformation only has to be done once. This makes it more likely thatpotential participants will in fact participate and, when participantsdo participate, that they will have a good (error free) outcome. Theone-time registration helps ensure that a party wishing to be aparticipant in the process and the online community using the process,only needs to register once to be able to participate in any of theprojects whose payments are executed through the CPMS 10. The CPMS 10can improve the efficiency of the registration of participatingorganizations into the construction payment process by creating adurable community that facilitates the process of participating onmultiple projects over time by capturing organization and individualinformation once. The method allows organizations to be registered as apotential participant in any project that is being initiated by a memberof the community of businesses using the CPMS 10. In addition to itsvalue in participating in multiple projects, the one-time registrationis also valuable for participants to access information regardingmultiple GC's, owners, lenders, subcontractors, etc. For example, theone-time registration gives owners, lender, and GC's the opportunity tolearn about new subcontractors through the CPMS 10. Also, an owner thathas several projects pending each with different GC's can accessinformation about each individual GC.

The real-time notification of the draw helps ensure that allparticipants in a draw are: 1) notified in a timely and uniform way; and2) provided with a template to provide the information necessary to bepaid. The CPMS 10 helps to eliminate the errors (not getting notified ormistaking which project the request is coming from) that delay thepayment process. The CPMS 10 improves the efficiency of the real-timenotification of the draw process by giving the GC the option ofmaintaining the schedule of draws on the CPMS 10, by reducing the effortof notifying the participants in the draw, by automating the process ofbuilding the list of participants for a draw, by automatically notifyingdraw participants of the draw once it has been declared, and byproviding readily accessible links so that subcontractors can access theCPMS 10 to submit the documentation that is required by the draw. TheCPMS 10 notifies participants in “real-time” to the extent thattimeliness is an intrinsic aspect of its correct behavior. Therefore,the CPMS 10 operates in real-time to the extent that it meets its timing(e.g., deadline) requirements. Operating in real-time is not the same asoperating “on-line,” or “seen through a web page,” or operating “realfast.” Timing issues embodied in requirements for deadlines, responsetimes, timeframes, or time constraints are typicallyapplication-dependent. They are not simply functions of bureaucraticlatencies, network bandwidths, processor speeds, or which browser,server, or network programming language one uses to create a man-machineor user interface. (Although these things may impact process timing,they do not provide methods to actually manage the resources needed tomeet timing requirements.)

The CPMS 10 can be used by an owner, owner's representative, lender, GC,or title company to create and maintain a project budget. As notedabove, the project budget can include soft costs above the line of theGC, hard costs below the line of the GC, or a combination of hard andsoft costs. Some embodiments of the CPMS 10 can also be used to createand manage change orders in which the budget is modified (generally byexpanding the budget) and the modified budget is approved by theappropriate participants. The budget can include a total cost for theconstruction project, along with line item costs for each phase or jobthat must performed to complete the construction project. The CPMS 10can structure the budget to facilitate the payment of subcontractors, toallow efficient progress tracking, and to allow automated invoicing.

The CPMS 10 can create automated invoices that correspond precisely tothe overall project budget and that also correspond precisely to thelien waivers and sworn statements. The CPMS 10 creates automatedinvoices that are a snap-shot in time of the activity that has alreadyoccurred against the overall project budget. The CPMS 10 can be used tocreate automated invoices that correspond precisely to the line items inthe overall budget. This results in invoices and reports that areconsistent with the way in which the construction project is broken downfor financial purposes, tracking purposes, etc. Using the CPMS 10, aninvoice screen can be used to capture information necessary to createthe invoice; however, not all of the information necessary to create theinvoice must be re-entered, because the information can be gathered byreferring to the overall project budget. This also guarantees that theinvoices (and the G702/703 documents) will be consistent with theoverall project budget and will be consistent between draws or betweenany other time periods (unless a participant such as the owner wants theinvoices to change). The CPMS 10 can also be used to customize theautomated invoices (or the G702/703 documents) according to therequirements of the lender, the owner, the owner's representative, theGC, etc.

The budget and the automated invoices can be used to uniformly collectand continually reference information that will be used throughout theconstruction payment management process. The information collected doesnot have to be re-entered again in the payment process helping to ensurethat errors (either key-stroke or due to a misinterpretation of thedata) are not introduced. In general, participants have visibility intothe payment process conducted using the CPMS 10. This helps to lower theeffort necessary to determine the project status and to understand whatwork each participant must to do to facilitate the payment process. Italso helps to highlight organizations or individuals who may habituallycause delays or errors in the process, making it easier to correct thebehavior or eliminate the participant. Accurate invoicing minimizesinvoice review and issue resolution effort, promotes complete andaccurate sworn statements, minimizes discrepancies between swornstatements and inspections, and enables timely payment. The CPMS 10 canimprove the efficiency of several activities later in the constructionpayment process by capturing complete and consistent invoice informationin a timely manner.

The CPMS 10 can be used to generate automated sworn statements andautomated lien waivers. Using the CPMS 10, the GC knows who was notifiedof the draw and who has responded by providing an invoice. Once theinvoices are approved by the GC (and any other participant above theline of the GC, such as the owner, the owner's representative, thelender, the title company, etc., that must approve the invoices), theCPMS 10 can use the approved invoices to automatically generate thesworn statement and the lien waivers. The CPMS 10 can automaticallygenerate the sworn statement and the lien waivers from the invoicessubmitted by subcontractors and material suppliers, helping to ensurethat no typographical errors will be introduced and that the swornstatement and lien waivers will only include line items that have beensubmitted by the subcontractors and material suppliers. The CPMS 10 canhelp reduce the risk of inaccuracies in the sworn statement and the lienwaivers by drawing on the invoice details already stored in the systemto automatically create the content of the sworn statement and the lienwaivers. This processing helps eliminate errors that are possible due tononstandard, inconsistent, and untimely invoices and typographicalerrors that can occur during transcription. Overall, this lowers therisk profile of the construction payment process by increasing theaccuracy and timeliness of critical construction project information.The CPMS 10 can create the automated lien waivers according to the legalstandards of the state in which the construction site is located.

The CPMS 10 can generate sworn statements that correspond precisely tothe invoices. Invoices are often broken down by the type of work beingperformed (e.g., electrical, plumbing, etc.), while sworn statements areoften broken down by the participant performing the work (e.g., GC,subcontractors, and material suppliers). The CPMS 10 can be used toensure that the sum of the invoice amounts equals the total amount onthe sworn statement. Also, the CPMS 10 can also be used to ensure thatthe amounts on the lien waivers equal the amounts on the invoices,because the information for the automated lien waivers is gathered fromthe approved invoices that have been stored in the CPMS 10. In addition,the lien waivers will be consistent with the sworn statement because thesworn statement was also generated by the CPMS 10 using the informationfrom the approved invoices. This is particularly valuable when GC's andsubcontractors (or owners, lender, and GC's) have disputed the invoiceamount and have negotiated a final amount over a period of time. Thefinal amount will be reflected in the automated and approved invoicethat is stored in the CPMS 10 and used to generate the lien waivers andsworn statement. The CPMS 10 assures that only the approved invoiceamount will be reflected in the lien waiver and sworn statementdocuments. By also using the stored budget as a framework for allautomated documents, the CPMS 10 further assures that the invoices, lienwaivers, and sworn statements will be precise and consistent. The CPMS10 can also be used to customize the sworn statements and lien waiversbased on the requirements of the lender, the owner, the owner'srepresentative, the GC, etc.

The CPMS 10 also helps improve the efficiency of generating swornstatements and lien waivers by migrating storage of the invoice, swornstatement, and lien waiver documents to an electronic medium, reducingthe time and effort necessary to store and access them. This improvesthe overall efficiency of the construction payment process by makingthese documents available to authorized parties needing them to carryout their responsibilities. The database of the CPMS 10 can store alibrary of electronically signed invoices, sworn statements, and lienwaivers. If necessary, participants can use the CPMS 10 to generate hardcopies of any of the electronically signed documents.

In one embodiment, the CPMS 10 can create the automated invoices, swornstatement, and lien waivers once all information has been entered andall issues have been resolved. In other embodiments, the CPMS 10 cancreate the automated invoices first, ensure the invoices are approved,create the automated sworn statement second, ensure the sworn statementis signed, and create the automated lien waivers third.

Once all of the information (invoices, inspection reports, bankinginformation, etc.) has been entered and all issues have been resolved,the owner, the owner's representative, the lender, the title company, orthe GC can pay the participants in the draw. The sub-contractors,material suppliers, or any other participants can provide their lienwaivers in exchange for payment. The CPMS 10 can organize this processand can automatically execute the exchange without risk that eitherparty will do their part without the other doing theirs. The CPMS 10also helps eliminate the need for expensive and time consuming in-personmeetings to affect the exchange of lien waivers for payment. The CPMS 10(which rigorously tracks the documents) also helps to ensure that all ofthe lien waivers are collected. This reduces the risk that bad recordkeeping will result in lien waivers that have not been released at theconclusion of the construction project. The CPMS 10 can improve theefficiency of the payment/lien waiver release process by implementingthe method in a network-enabled computer system. This allows all partiesto securely prepare both payment and lien waiver release in a trustedenvironment. The CPMS 10 facilitates an efficient exchange of paymentfor lien waiver, because the CPMS 10 allows both the payment and lienwaiver to be staged in preparation for an automated exchange therebyreducing the risk associated with the project. The GC can be assuredthat it will receive the appropriate lien waivers coincident withpayment, and the subcontractors do not bear the risk associated withlengthy delays in payment.

The CPMS 10 can facilitate an exchange of lien waivers and paymentinstructions. In some embodiments, the CPMS 10 can release the lienwaiver(s) substantially simultaneously with an acknowledgement from thepayment system 26 that the participant(s) have received payment. Theterm “substantially simultaneously” as used herein and in the appendedclaims includes any time period less than the time necessary to request,process, and transfer funds with an automated clearing house (ACH)payment (which can take up to about 72 hours). For example, the“substantially simultaneously” release of lien waivers can include animmediate release of lien waivers, a release of a batch of lien waiversat the end of a business day, or a release of lien waivers after thetypical time period that it takes to transfer funds via an ACH system.In one embodiment, the CPMS 10 can receive and store the lien waivers inthe electronic holding bin/escrow 54 until all lien waivers from theparticipants in the draw have been received. Once all the lien waivershave been received, the CPMS 10 can send instructions for the paymentsystem 26 to transfer funds to each participant in the draw. Forexample, once all the subcontractors electronically sign and submittheir lien waivers to the CPMS 10, the CPMS 10 can instruct the paymentsystem 26 to pay each subcontractor. The CPMS 10 can release the lienwaivers either when the payment instruction is transmitted to thepayment system 26 or only after receiving an acknowledgement that theparticipants have actually received funds.

If the payment system 26 includes an ACH system, the paymentinstructions are generally processed in batches so that the participantswill not receive the funds immediately. In an ACH system, the paymentinstruction can generally be returned by the RDFI during a 48 hourperiod. During this 48 hour period, the RDFI can notify the CPMS 10 andthe ODFI that the funds cannot be transferred (e.g., due to insufficientfunds, an invalid account number, etc.). After this 48 hour period, theCPMS 10 can assume that the RDFI has processed the payment instructionif the CPMS 10 has not been notified otherwise. The ODFI generally has a24 hour front window to collect the payment instructions from the RDFIand to release payment to the accounts of the participants in the draw.As a result, it can take about 72 hours from the time the CPMS 10transmits the payment instructions until the ODFI transfers funds intothe accounts of the participants.

In some embodiments, the CPMS 10 can flag certain participants to removethose participants from the batch processing of the ACH system and canpay those participants separately by another method, such as by a directwire transfer of funds or another immediate type of electronic fundstransfer. In other embodiments, most participants can be paid by animmediate type of electronic funds transfer (such as a direct wiretransfer), but some participants can be combined for one or more ACHbatch transfers. In still other embodiments, the CPMS 10 can transmiteach payment instruction to the payment system 26 as the CPMS 10receives each lien waiver from each participant and funds can betransferred immediately to the participant from which the lien waiverwas received. In general, the CPMS 10 can group the payment instructionsin any suitable manner and can use any suitable type of payment method.

In each embodiment of the invention, the CPMS 10 can establish aconnection between the current lien waiver and the current paymentcorresponding to the current draw, rather than exchanging the previouslien waiver for the current payment of the current draw. For example,the CPMS 10 can release the lien waiver for the current month for thecurrent draw, rather than releasing the lien waiver for the previousmonth for the current draw. In this manner, the subcontractor is notexposed to liability if the CPMS 10 releases its lien waiver beforepayment is made, and the owner (or GC, title company, lender, etc.) isnot exposed to liability if the CPMS 10 makes payment before the lienwaivers are released.

Rather than paying the GC who pays its subcontractors who then pay theirsubcontractors, participants in the CPMS 10 can be paid directly usingan electronic distribution of funds (e.g., any suitable type of EFT,ACH, or wire transfer of funds). This speeds up the payment process(lowering costs) and reduces the risk that parties (in the hierarchy)will not be paid. The direct distribution of funds is made possible bythe CPMS 10 being used to collect all of the information that isnecessary to make payments. The information collected using the CPMS 10can be trusted, because of the rigor with which the methods can beimplemented with software. As a result, the direct distribution of fundscan be efficient (no reworking or reentry of information necessary) anderror free. The CPMS 10 can improve the efficiency of thesubcontractor/material supplier payment process by reducing the elapsedtime necessary to complete the payment process. The CPMS 10 can reducetransaction costs by replacing a hierarchical payment process withdirect payments, while improving fiscal and management control. The CPMS10 can replace the use of checks by an electronic transfer of funds,reducing communications costs and improving visibility into the statusof payments and reducing the risk of untimely or incomplete payment toall parties involved in the construction process (especially those loweron the supply chain).

FIGS. 2-7 illustrate an overview of the construction payment managementprocesses that can be performed by the participants 24 using the variousmodules, managers, and engines stored in the application server 12. FIG.2 illustrates a manage project process 94 (which can be performed by theproject module 28 and/or the budget module 36), a manage draw process 96(which can be performed by the draw module 44), a manage change orderprocess 98 (which can be performed by the manage change order module48), a manage organization process 100 (which can be performed by theorganization module 42 and/or the user module 50), and a manage systemenvironment process 102 (which can be performed by the access manager38, the notifications manager 40, and/or the system environment manager52).

FIG. 3 illustrates the manage project process 94, which can include acreate project task 104, a maintain project task 106, and a createbudget task 108. FIG. 4 illustrates the manage organization process 100,which can include a create organization task 112, a maintainorganization task 114, a create user task 116, and a maintain user task118. FIG. 5 illustrates the manage draw process 96, which can include aninitiate draw task 120, a create draw request task 122, a disburse fundstask 124, a perform inspection task 126, and an approve draw requesttask 128. FIG. 6 illustrates the manage change order process 98, whichcan include a create change request task 130, a process change requesttask 132, and a change participant task 134. FIG. 7 illustrates managesystem environment tasks 102, which can include a manage access task136, a manage messages task 138, a create reports task 140, a providehelp task 142, and a maintain system task 144. The create reports task140 can be performed by any participant above or below the line of theGC in order to create customized reports regarding the progress of theconstruction project, including the ability to monitor portions of theconstruction project, particular participants, the overall project, etc.

FIGS. 8-136 illustrate construction payment management methods accordingto several embodiments of the invention. FIG. 8 illustrates a createorganization process 146, which can be included in the manageorganization process 100. The create organization process 146 can beperformed by any of the participants 24 using the organization module42. The create organization process 146 can include a createorganization task 148, an update organization profile task 150, an editorganization task 152, an activate organization notification task 154,an activate organization task 156, and either an organization declinedtask 158 or an organization activated task 160. An update user profiletask 162 can also be performed, as further described with respect toFIG. 22.

FIG. 9 illustrates a create organization form that can be associatedwith the create organization task 148. Each participant 24 can accessthe create organization form through the organization module 42. Theparticipant 24 can enter the requested information, such as businessinformation, primary contact information, tax information, and bankinginformation. In some embodiments, the first user of the participatingorganization 24 that enters his or her information as the primarycontact information can be deemed an administrator for that participant24 and can be given more access to the information for the participantthan subsequent users. The CPMS 10 can use comprehensive role-basedsecurity so that project participants only see information tailored totheir specific needs in the project. Once an organization is registeredin the CPMS 10, the organization can receive payments for any projectsmanaged by the CPMS 10.

FIG. 10 illustrates a notification that can be transmitted during theupdate user profile task 162. The terms “system notification,”“notification,” or “system message” as used herein and in the appendedclaims refer to any form of communication with a participant 24, such asan email message, a screen notice, a text message, a voice message, etc.The system notification of FIG. 10 can include a username and atemporary password for the first user of the participant 24.

FIG. 11 illustrates a notification that can be transmitted during theupdate organization profile task 150. The notification of FIG. 11 can besent to the administrator for the participant 24. The notification caninclude a statement requesting the recipient to update the organizationprofile, add users before participating in a project, and provide bankdetails.

FIG. 12 illustrates an edit organization form that can be associatedwith the edit organization task 152. Each participant 24 can access theedit organization form through the organization module 42. Theparticipant 24 can modify the existing information, such as businessinformation, primary contact information, tax information, and bankinginformation. In some embodiments, the first user of the participatingorganization 24 that entered his or her information as the primarycontact information is the only user given access to the editorganization form.

FIG. 13 illustrates an activate organization notification that can betransmitted during the activate organization notification task 156. Thenotification of FIG. 13 can include a statement that the details of theorganization have been updated and a request that the organization bevalidated and activated.

FIG. 14 illustrates an activate organization form that can be associatedwith the activate organization task 156. The form of FIG. 14 can includea listing of participants 24 (e.g., including the organization name, itsrole in the construction process, the ability to select participants 24,and the ability to view information for the participants 24). The formof FIG. 14 can also include a “Find” feature, the ability to specify thetype of participant 24, and the ability to decline/deactivate selectedorganizations and to provide a reason for the decline/deactivation.

FIG. 15 illustrates an organization activated notification that can betransmitted during the organization activated task 160. Similarly, FIG.16 illustrates an organization declined notification that can betransmitted during the organization declined task 158.

FIG. 17 illustrates a maintain organization process 162, which can beincluded in the manage organization process 100. The maintainorganization process 162 can be used by the organizations themselves orby other participants to maintain the accuracy of the contactinformation, bank account information, or any other type of informationnecessary for the construction payment process. The maintainorganization process 162 can be performed by any of the participantsusing the organization module 42. The maintain organization process 162can include a browse organization task 164, an edit organization task166, an organization updated task 168, and a view organization task 170.

FIG. 18 illustrates a view organization screen that can be associatedwith the view organization task 170. The view organization screen caninclude business information and primary contact information for anorganization.

FIG. 19 illustrates a browse organization screen that can be associatedwith the browse organization task 164. The browse organization screencan include a list of participants, including the organization name, theorganization role in the construction process, the primary contact, andthe phone number. The browse organization screen can include a “Find”feature and links for viewing additional information about eachparticipant. In one embodiment, the browse organization screen can beused by a GC to view its preferred subcontractors or material suppliers.

FIG. 20 illustrates an edit organization form that can be associatedwith the edit organization task 166. The participant can edit theexisting information, such as business information, primary contactinformation, tax information, and banking information. In someembodiments, the first user of the organization that entered his or herinformation as the primary contact information is the only user givenaccess to the edit organization form.

FIG. 21 illustrates an organization profile updated notification thatcan be transmitted during the organization updated task 168. Thenotification of FIG. 21 can include information regarding the updatedprofile for the participant along with a name of the primary user oradministrator for the participant.

FIG. 22 illustrates a create user process 172, which can be included inthe manage organization process 100. The create user process 172 can beused each time a new user at an existing organization is created inorder to give the new user the appropriate access to the CPMS 10 (e.g.,the appropriate security levels with a user identification andpassword). The create user process 172 can also be used to update userprofiles. The create user process 172 can be performed by any of theparticipants 24 using the organization module 42. The create userprocess 172 can include a create user task 174 and an update userprofile task 176.

FIG. 23 illustrates a create user form that can be associated with thecreate user task 174. In some embodiments, the create user form can beused to add users after the primary user or administrator has alreadybeen created for the participant. The new user can enter personalinformation, security information (e.g., user name and password), emailnotification preferences, and security clearance levels (e.g., whetherthe user can manage projects and/or sign documents).

FIG. 24 illustrates an update user profile notification that can betransmitted during the update user profile task 176. The notification ofFIG. 24 can include a statement that the user has been added as a memberof the organization, along with the user's security information (e.g.,user name and a temporary password).

FIG. 25 illustrates a maintain user process 178, which can be includedin the manage organization process 100 and can continue from FIG. 22.The maintain user process 178 can be used to browse the users in eachorganization and to view, edit, and update the users in eachorganization. The maintain user process 178 can be performed by any ofthe participants using the organization module 42. The maintain userprocess 178 can include a browse users task 180, and edit user task 182,a user profile updated task 184, and a view user task 186.

FIG. 26 illustrates a view user screen that can be associated with theview user task 186. The view user screen of FIG. 26 can include theuser's personal information, email notification preference, and securityclearance level.

FIG. 27 illustrates a browse users screen that can be associated withthe browse users task 180. The browse users screen of FIG. 27 caninclude a list of one or more users for each participant, and caninclude the users' names, email addresses, and phone numbers. The browseusers screen can also include links to edit the information for eachuser.

FIG. 28 illustrates an edit user form that can be associated with theedit user task 182. A user can provide personal information, emailnotification preferences, and security clearance levels.

FIG. 29 illustrates a user profile updated notification that can betransmitted during the user profile updated task 184.

FIG. 30 illustrates a create project process 188, which can be includedin the manage project process 94. The create project process 188 can beperformed by a GC, a lender, an owner, or an owner's representativeusing the project module 28 to initiate a new project in the CPMS 10.The create project process 188 can include a create project task 190, aproject creation task 192, a project user access task 194, and a projectresponsibilities task 196.

FIGS. 31 and 32 illustrate a create project form that can be associatedwith the create project task 190. A GC, a lender, an owner, or anowner's representative can provide project identification information,project funding information, project owner information, projectarchitect information, and site information.

FIG. 33 illustrates a project created notification that can betransmitted during the project creation task 192. The notification ofFIG. 33 can include a statement that the GC, lender, owner, or owner'srepresentative has created a new project, along with a link to a screenthat allows users from the participants to be assigned to the project.

FIG. 34 illustrates a project user access screen that can be associatedwith the project user access task 194. The project user access screencan include the project name, the project number, the GC name, and alist of users for a particular project and/or a particular organization.The users can be identified by name and username, and can be deemed aproject manager or a signer.

FIG. 35 illustrates a project responsibilities notification that can betransmitted during the project responsibilities task 196. Thenotification of FIG. 35 can include a statement that a user'sresponsibilities with respect to a project have been modified.

FIG. 36 illustrates a maintain budget process 198, which can be includedin the manage project process 94. The maintain budget process 198 can beused to create and view a top level budget for the construction project,to assign line items to participants, and to assign responsibilities toparticipants. Using the budget module 36, the maintain budget process198 can be performed by a GC for subcontractors or by a subcontractorfor a second-level subcontractor or a material supplier. The maintainbudget process 198 can include an enter top level budget task 200, anaccept project task 202, an accept project form task 204, a projectdeclined task 206, an add users task 208, a project accepted task 210, aproject home page task 211, a project user access task 212, a projectresponsibilities task 214, and a project budget view task 216. If theproject is declined, the maintain budget process 198 can include anenter budget task 218 and can return to the accept project task 202.After the enter top level budget task 200, the maintain budget process198 can include an invoice code setup task 220, an enter draw dates task222, and an assign invoice code task 224.

FIG. 37 illustrates an enter top level budget form that can beassociated with the enter top level budget task 200. The enter top levelbudget form can include the project name, the project number, and thecontract value. A GC or a subcontractor can provide a retentionpercentage value, phase codes, phase code descriptions, organizationnames, budget amounts, and account codes. A GC or subcontractor canspecify whether the organization is only providing materials. The entertop level budget form can also include links to setup draw dates andsetup invoice code screens/forms. The phase codes and phase codedescriptions can be used to define the contracting requirements of eachparticular job that must be completed in order to complete the project.The phase codes and phase descriptions can be provided, for example, bythe American Institute of Architects (AIA), by the ConstructionSpecifications Institute (CSI), or by customizing the AIA or CSI phasecodes and phase descriptions. In some embodiments, the phase codes andphase descriptions can be completely customized by the participants. Thetop level budget can also be referred to as the schedule of values, thecommitted costs (after the GC has received bids from subcontractors), orthe project estimate. In some embodiments, the phase codes included inthe top level budget provide the basis for the draw requests, in thateach draw request includes specific line items associated with specificphase codes. In some embodiments, the GC can use an external softwareprogram to generate a budget and the budget module 36 can interface withthe external software program to import the budget into the applicationserver 12 or the database server 14.

FIG. 38 illustrates an enter draw dates form that can be associated withthe enter draw dates task 222. A GC or subcontractor can enter the dayof the month on which draws are to take place, along with the specificdates for the draws (e.g., each month on a particular day). The enterdraw dates form can also include a Calculate Draw Dates button forautomatic calculation of the draw dates and/or an Add Draw Date buttonfor manual entering of the draw dates.

FIG. 39 illustrates an invoice code setup form that can be associatedwith the invoice code setup task 220. A GC or subcontractor can selectan invoice code (e.g., codes by building—Building 1, 2, or 3), enter anew invoice code, create an invoice code, enter a preference for thedisplay of budget lines (e.g., by phase code), and enter a preferencefor printing options. The invoice code setup form can facilitate theautomated generation of invoices and sworn statements by the CPMS 10.The invoice codes can be used for customized reports or for interfacingwith other types of existing software. The invoice codes can allowparticipants to sort budget line items based on the requirements of thearchitect, the owner, etc. The CPMS 10 can also use account codes in thebudget to interface with existing accounting systems. The account codescan be used to maintain the budget, to record results of the draw, andto facilitate invoicing and payment.

FIG. 40 illustrates an assign invoice codes form that can be associatedwith the assign invoice code task 224. A GC or subcontractor can providethe invoice code (e.g., Building 1, 2, or 3) and can use links to accesssub-budgets for each phase code. The assign invoice codes form caninclude the project name, the project address, the phase codes, thephase code descriptions, the organization to which the job is contractedto, and the budget amount. The assign invoice codes form can alsofacilitate the automated generation of invoices and sworn statements bythe CPMS 10.

FIG. 41 illustrates an accept project notification that can beassociated with the accept project task 202. The notification of FIG. 41can include a statement that the subcontractor or material supplier hasbeen added as a participant on a project, a project description, and thesubcontractor's or material supplier's participation details. Thesubcontractor or material supplier can use a link to access an acceptproject form as shown in FIG. 42 to accept or decline the project.

FIG. 42 illustrates an accept project form that can be associated withthe accept project form task 204. The accept project form can includethe GC project number, the system project number, the GC name, theproject name, the project address, and a budget line item. The acceptproject form can provide the subcontractor or the material supplier withproject information and a budget line item. The subcontractor or thematerial supplier can use the Accept or Decline buttons to accept ordecline the project associated with the budget line item. Thesubcontractor or the material supplier can also provide a reason fordeclining the project. The line items from the accept project forms canalso be used to facilitate automated generation of invoices and swornstatements by the CPMS 10.

FIG. 43 illustrates a project declined notification that can betransmitted during the project declined task 206. The notification ofFIG. 43 can include the name of the subcontractor or material supplierthat has declined the project, the budget item declined, and the reasonfor the decline. The notification of FIG. 43 can provide the ability toassign the organizational role to another participant.

FIG. 44 illustrates a project accepted notification that can betransmitted during the project accepted task 210. The notification ofFIG. 44 can include the name of the subcontractor or material supplierthat has accepted the project and the budget item accepted. Thenotification of FIG. 43 can provide the ability to access the projectdetails.

FIG. 45 illustrates a project home page that can be associated with theproject home page task 211. The project home page can include theproject name, completed draws information, and pending drawsinformation. The project home page can include a project overview with aproject schedule progress bar, a funds disbursed progress bar, and apercent complete progress bar. The project home page can include one ormore links to particular actions that can be performed with respect tothe project (e.g., project profile, project budget, view projectparticipants, setup invoice codes, manage project users, initiateunscheduled draws, etc.).

FIG. 46 illustrates an add users notification that can be transmittedduring the add users task 208. The notification of FIG. 46 can include astatement confirming that the subcontractor or material supplier hasjoined the project. The notification of FIG. 46 can include a requestfor the subcontractor or material supplier to add users (e.g., membersof the organization) to the system.

FIG. 47 illustrates a project user access form that can be associatedwith the project user access task 212. The subcontractor or materialsupplier can select each user's security clearance (e.g., a projectmanager or a signer). The project user access form can include theproject name, the GC name, and a list of users at the subcontractor ormaterial supplier organization.

FIG. 48 illustrates a project responsibilities notification that can beassociated with the project responsibilities task 214. The notificationof FIG. 48 can include a statement that the user's responsibilities havebeen modified, along with the new security clearances. The notificationof FIG. 48 can include a link to access the project budget.

FIG. 49 illustrates a project budget view screen that can be associatedwith the project budget view task 216. A GC or subcontractor can accessthe project budget view screen through the budget module 36. The projectbudget view screen can include the project name, the GC name, theproject address, and a list of the budget items. The list of budgetitems can include the phase codes, the phase code descriptions, thesubcontractor or material supplier to which the budget item iscontracted, the budget amount, the payments, the retention, the balance,and a link to any sub-budgets.

FIG. 50 illustrates an enter budget form that can be associated with theenter budget task 218. A GC or subcontractor can access the enter budgetform through the budget module 36. The GC or subcontractor can enter therequested information, such as the phase codes, the phase codedescriptions, and the budget amount. The GC or subcontractor can changethe organization associated with a particular budget line item. The GCor subcontractor can select whether the organization is providingmaterials only.

FIG. 51 illustrates a terminate budget item process 226, which can beincluded in the manage project process 94. The terminate budget itemprocess 226 can be performed by a GC or subcontractor. The terminatebudget item process 226 can include an enter top level budget task 228and a terminate budget task 230.

FIG. 52 illustrates an enter top level budget form that can beassociated with the enter top level budget task 228. A GC orsubcontractor can access the enter top level budget form through thebudget module 36. The enter top level budget form can include theproject name, the project number, the contract value, and a list oforganizations. The GC or subcontractor can enter the requestedinformation, such as a retention percentage, phase codes, phase codedescriptions, an account code, and whether the organization is onlysupplying materials. The GC or subcontractor can also choose to add newline items or to terminate a particular line item. The enter top levelbudget form can include links to a setup draw dates form and/or a setupinvoice codes form.

FIG. 53 illustrates a terminate budget screen that can be associatedwith the terminate budget task 226. After a GC or subcontractor selectsa line item to terminate, the terminate budget screen provides aconfirmation and a statement that any un-paid balance can be madeavailable for re-assignment.

FIG. 54 illustrates a draw process 232, which can be included in themanage draw process 96. The draw process 232 can be used to create aschedule for the project's draws; to initiate each draw; to enter andsign invoices; to view pending draws; to generate invoices, swornstatements, and lien waivers; to determine if funds are available; andto disburse funds. The draw process 232 can be performed by several ofthe participants using the draw module 44. The draw process 232 caninclude a create draw schedule task 234, an initiate draw task 236, anenter invoice task 238, an enter invoice form task 240, a sign invoicetask 242, an invoice details updated task 244, a view pending drawrequests task 246, a generate invoice task 248, a sworn statement formtask 250, a funds available task 252, a view draw request task 254, asign lien waiver task 256, a lien waiver form task 258, an all lienwaivers signed task 260, a view draw request with disburse funds buttontask 262, a payments disbursed task 264, a lien waiver signed task 266,and a view draw request task 268. The draw process 232 can also includea payments details accepted task 270, an invoice not included in drawtask 272, and a payment details not accepted task 274. The draw process232 can be performed so that the lien waivers will be released for thecurrent draw, not for the previous draw.

FIG. 55 illustrates a create scheduled draw notification that can betransmitted during the create draw schedule task 234. The notificationof FIG. 55 can be transmitted in real-time to all draw participants andcan include a statement that a scheduled draw is pending and thatparticipants for the draw have not yet been selected.

FIG. 56 illustrates an initiate draw form that can be associated withthe initiate draw task 236. A GC can access the initiate draw formthrough the draw module 44. The initiate draw form can include theproject name, the project number, the project address, the draw number,the draw date, and a list of the potential participants for the draw.The list of potential participants can include the phase codes, thephase code descriptions, the organization name, the budget amount, thepayment amount, the holdback accrued, and the remaining balance. The GCcan select each of the participants for the draw. The GC can select asubset of the potential participants for the draw (e.g., at least onepotential participant) or can select all of the potential participantsfor the draw. In some embodiments, the initiate draw form can include aselection mechanism for selecting all of the potential participants forthe draw at one time. In other embodiments, the CPMS 10 canautomatically select all of the potential participants for the drawwithout prompting the GC to select individual participants.

FIG. 57 illustrates an enter invoice notification that can betransmitted during the enter invoice task 238. The notification of FIG.57 can include a statement that a draw has been scheduled for a projectand that the subcontractor or material supplier can enter the details ofthe payments due. The notification can also include the organizationrole and the particular budget item for the subcontractor or materialsupplier. The notification can be transmitted in real-time to all drawparticipants.

FIG. 58 illustrates an enter invoice form that can be associated withthe enter invoice form task 240. The subcontractor or material suppliercan use the enter invoice form to provide the invoice amount for thedraw. The enter invoice form can also include the project name, theproject number, the project address, the draw number, the draw date, andthe particular line item for that subcontractor or material supplier.

FIG. 59 illustrates a sign invoice notification that can be transmittedto the GC during the sign invoice task 242. The notification of FIG. 59can include a statement that the subcontractor or material supplier hasapproved the invoice for a particular draw and that a sworn statementmust be signed. The CPMS 10 can be used to assign security/authorityroles to each user, such as management, accounting, or authorized tosign. The CPMS 10 can notify a user with the authority to sign the swornstatement so that an officer of the organization signs the swornstatement, if necessary. The CPMS 10 can be used to change thesecurity/authority roles that are necessary to sign a sworn statement(e.g., a lender can require that an officer signs the sworn statement,rather than an administrator for the organization).

FIG. 60 illustrates a sign invoice form that can be associated with thesign invoice task 242. The GC can access the sign invoice form throughthe draw module 44. The GC can review the details of the invoice, suchas the particular organization, the request amount, the budget amount,the payment amount, the holdback accrued, and the remaining balance. TheGC can then choose to sign the invoice statement. The sign invoice formcan include a link to an automated sworn statement form.

FIG. 61 illustrates an invoice details updated notification that can betransmitted to the GC during the invoice details updated task 244. Thenotification of FIG. 61 can include a statement that a subcontractor ormaterial supplier has updated the payment details for a draw on aparticular date for a particular project. The notification can provide alink in order to view the invoice details.

FIG. 62 illustrates a view pending draw request screen that can beassociated with the view pending draw request task 246. A GC can accessthe view pending draw request screen through the draw module 44. The GCcan select each participant to include in the draw, confirm the draw,and send a notification in real-time to the signer of each organization.However, the GC can also reject the pending draw request, notifyselected participants to re-enter an invoice, and provide a reason forrejecting the draw request. The view pending draw request screen caninclude the project name, the project number, the project address, thedraw number, the draw date, a list of participants who have submittedinvoices, and a list of participants who have not submitted invoices.The participants can be organized by phase codes. For each phase code,the view pending draw requests screen can include the requested amount,the budget amount, the payment amount, the holdback accrued, and theremaining balance.

FIG. 63 illustrates an invoice details rejected notification that can betransmitted during the payment details not accepted task 274. Thenotification of FIG. 63 can include a statement that the payment andinvoice details entered by a particular user for a draw to be conductedon a date for a particular project have not been accepted and thereasons for the rejection. The notification can include a request forthe subcontractor or the material supplier to re-enter the paymentdetails before the draw closes.

FIG. 64 illustrates an invoice not included in the draw notificationthat can be transmitted during the invoice not included in draw task272. The notification of FIG. 64 can include a statement that theparticipant did not submit an approved sworn statement for a draw for aproject and that the participant and all of their subcontractors willnot be included in the draw. The notification can state that all swornstatements and invoices that were submitted have been destroyed.

FIG. 65 illustrates an automatically-generated invoice form (e.g., aform that is consistent with industry practices, such as a G702/703form) that can be associated with the generate invoice task 248 (labeledG702/703 in FIG. 54). A GC, subcontractors, and material suppliers canaccess the invoice forms through the draw module 44. The subcontractors,material suppliers, and/or architect can sign the invoice formelectronically (e.g., using an electronic signature software provider,such as AlphaTrust Corporation).

FIG. 66 illustrates an automatically-generated sworn statement form thatcan be associated with the sworn statement form task 250. A GC canaccess the sworn statement form through the draw module 44. The GC cansign the sworn statement form electronically (e.g., using an electronicsignature software provider, such as AlphaTrust Corporation).

FIG. 67 illustrates a make funds available notification that can betransmitted during the funds available task 252. The notification ofFIG. 67 can include instructions to follow a link to request lienwaivers and release funds when funds are available to be released for adraw on a project.

FIG. 68 illustrates a view draw request screen that can be associatedwith the view draw request task 254. A GC can access the view drawrequest screen through the draw module 44. The GC can review the detailsof the draw, authorize funds, and request lien waivers. The view drawrequest screen can include the project name, the project number, theproject address, the draw number, the draw date, and a list ofparticipants in the draw. The list of participants can include theparticipant name, phase code, whether a lien waiver has been received,the requested amount, the budget amount, the payment amount, theholdback accrued, and the remaining balance. The list of participantscan also include any subcontractor and their lien waivers.

FIG. 69 illustrates a sign lien waiver notification that can betransmitted during the sign lien waiver task 256. The notification ofFIG. 69 can be transmitted in real-time to all draw participants and caninclude a statement that the draw scheduled for a project has beenauthorized and that the subcontractor or material supplier is requestedto sign its lien waiver to receive payments for the draw.

FIG. 70 illustrates an automatically-generated lien waiver form that canbe associated with the lien waiver form task 258. Subcontractors andmaterial suppliers can access the lien waiver form through the drawmodule 44. The lien waiver form can be automatically generated based onthe budget, including the line items for each subcontractor or materialsupplier. The subcontractors and material suppliers can sign the lienwaiver forms electronically (e.g., using the AlphaTrust Corporationelectronic signature products). Once signed, the lien waivers 68 can bestored in the electronic holding bin/escrow 54.

FIG. 71 illustrates a lien waiver signed notification that can betransmitted during the lien waiver signed task 266. The notification ofFIG. 71 can include a statement that a subcontractor or materialsupplier has signed their lien waiver for a draw for a project. Thenotification can include access to details of the draw and the lienwaivers received so far.

FIG. 72 illustrates a view draw request screen that can be associatedwith the view draw request task 268. A GC, subcontractor, or materialsupplier can access the view draw request screen through the draw module44. The view draw request screen can include the project name, theproject number, the project address, the draw number, the draw date, anda list of participants in the draw. The list of participants can includethe participant name, phase code, whether a lien waiver has beenreceived, the requested amount, the budget amount, the payment amount,the holdback accrued, and the remaining balance. The list ofparticipants can also include any subcontractor and their lien waivers.

FIG. 73 illustrates an all lien waivers signed notification that can betransmitted during the all lien waivers signed 260. The notification ofFIG. 73 can include a statement that all the lien waivers for the drawfor a project have been signed. The notification can include a link toview the details of the draw and to disburse funds.

FIG. 74 illustrates a view draw request form that can be associated withthe view draw request with disburse funds button task 262. A GC (orarchitect, owner, owner's representative, lender, or title company) canaccess the view draw request form and approve the draw through the drawmodule 44 and/or the draw approval module 60. The view draw requestscreen can include the project name, the project number, the projectaddress, the draw number, the draw date, and a list of participants inthe draw. The list of participants can include the participant name,phase code, whether a lien waiver has been received, the requestedamount, the budget amount, the payment amount, the holdback accrued, andthe remaining balance. The list of participants can also include anysubcontractor and their lien waivers. When the GC disburses the funds,the lien waivers are substantially simultaneously released and thepayment instruction is sent to the ACH system 26.

FIG. 75 illustrates a payment disbursed notification that can betransmitted during the payments disbursed task 264. The notification ofFIG. 75 can be transmitted in real-time to all draw participants and caninclude a statement that the payments have been disbursed for the drawscheduled on a particular date on the project.

FIG. 76 illustrates maintain system screens tasks 276, which can beincluded in the manage system environment process 102. The maintainsystem screens tasks 276 can be used by each user or each organizationto customize the software environment according to particular needs. Forexample, an organization can customize phase codes for their projects.The maintain system screens tasks 276 can be performed by any of theparticipants using the system environment manager 52. The maintainsystem screens tasks 276 can include a maintain phase codes task 278, anadministrator user login task 280, an add/edit picklist task 282, anadd/edit organization role task 284, a default settings task 286, anedit notifications task 288, a default configuration task 290, and anadd/edit user role task 292.

FIG. 77 illustrates a maintain phase codes form that can be associatedwith the maintain phase codes task 278. Each participant can access themaintain phase codes form through the system environment manager 52. Theparticipant can add new or delete selected budget items.

FIG. 78 illustrates an administration user login screen that can beassociated with the administrator user login task 280. Each participantcan access the administrator user login screen through the systemenvironment manager 52. The user at the organization can enter a username and use the screen to log onto the system as any user in thesystem.

FIG. 79 illustrates an add/edit picklist form that can be associatedwith the add/edit picklist task 282. An administrator of the CPMS 10 canadd new or delete selected picklist entries (e.g., lists of states,types of projects, etc.) for various drop-down menus provided by theCPMS 10.

FIG. 80 illustrates an add/edit organization role form that can beassociated with the add/edit organization role task 284. A GC can accessthe add/edit organization role form through the system environmentmanager 52. The GC can select the security clearance for each type oforganization (e.g., bank, title company, GC, subcontractor, orarchitect).

FIG. 81 illustrates a default/configure settings form that can beassociated with the default settings task 286. A GC can access thedefault/configure settings form through the system environment manager52. The GC can enter its preferred settings, such as the draw closereminder days, the draw start reminder days, the draw request minimumlead time, the security identification, whether the inspector is to bepaid via the ACH system, whether to wait for all lien waivers, and whopays the inspector (e.g., the bank, the title company, the owner, theowner's representative, or the GC).

FIG. 82 illustrates an edit notification form that can be associatedwith the edit notifications task 288. A GC can access the editnotification form through the system environment manager 52. The GC canmodify the notifications that are transmitted during the variousprocesses. The GC can select a particular notification and edit thedefault notification as necessary. The GC can also specify whetherparticular authorizations are necessary, such as an authorization by thebank to change the notification.

FIG. 83 illustrates a default/configure process form that can beassociated with the default configurations task 290. A GC, owner,owner's representative, lender, etc. can access the default/configureprocess form through the system environment manager 52 in order tocustomize portions of the construction payment process or to change therules for portions of the construction payment process. For example, aGC can define and store its own phase codes. The GC, owner, owner'srepresentative, lender, etc. can choose whether to activate particulartasks in each process and can access a link to edit each one of thenotifications associated with the tasks.

FIG. 84 illustrates an add/edit user role form that can be associatedwith the add/edit user role task 292. A GC can access the add/edit userrole form through the system environment manager 52. The GC can selectroles for a particular user, such as a system administrator, a systemhelpdesk user, a local administrator, a regular user, and view onlyaccess. The GC can add new roles or delete selected roles.

FIG. 85 illustrates perform inspections tasks 294, which can be includedin the manage draw process 96. The perform inspection tasks 294 can beused to schedule and facilitate inspections of the construction project,if necessary before each draw. The perform inspections tasks 294 can beperformed by the GC and the inspector using the inspection module 58 ofthe draw module 94. The perform inspections tasks 294 can include aninspection required task 296, an inspection required form task 298, aprepare to conduct inspection task 300, a view previous inspections task302, an enter inspection task 304, an enter inspection report task 306,an inspection report form task 308, and an inspection report failed task310.

FIG. 86 illustrates a prepare to conduct inspection notification thatcan be transmitted during the prepare to conduct inspection notificationtask 300. The notification of FIG. 86 can include a statement that adraw has been scheduled for a project on a date and that the inspectoris requested to prepare to conduct an inspection for the draw. Thenotification can state that the inspection should be conducted onlyafter receiving confirmation.

FIG. 87 illustrates an inspection required notification that can betransmitted during the inspection required notification task 296. Thenotification of FIG. 87 can include a statement a scheduled draw ispending for a project and a link to specify if an inspection is requiredfor the draw.

FIG. 88 illustrates an inspection required screen that can be associatedwith the inspection required task 298. A GC (or owner, owner'srepresentative, lender, or title company) can access the inspectionrequired screen through the inspection module 58 of the draw module 44.The inspection required screen can include the project name, the projectnumber, the draw number, the owner name, the draw date, the projectaddress, and a list of participants. The list of participants caninclude the request amount, the organization name, the organizationrole, the budget item, the budget amount, the payment amount, theholdback accrued, and the remaining balance. The inspection requiredscreen can also include general comments, comments to the inspector, andwhether an inspection should be scheduled.

FIG. 89 illustrates an enter inspection report notification that can betransmitted during the enter inspection task 304. The notification ofFIG. 89 can include a statement that the draw schedule on a date for aproject has been authorized and that the recipient should proceed withthe inspection. The notification can include a link to view the detailsof the project and to generate an inspection checklist.

FIG. 90 illustrates an enter inspection report form that can beassociated with the enter inspection report task 306. The inspector canenter the details of the inspection on the inspection report form. Theinspection report form can include the project name, the project number,the draw number, the draw date, the owner name, the project address, theinspection date, and general inspection comments.

FIG. 91 illustrates an inspection report form screen that can beassociated with the inspection report form task 308. A GC, owner,owner's representative, title company, or inspector can access theinspection report form screen through the inspection module 58 of thedraw module 44.

FIG. 92 illustrates an inspection report failed notification that can betransmitted during the inspection report failed task 310. Thenotification of FIG. 92 can include a statement that there is a highconcern level for the project following the inspection conducted on aparticular date. The notification can include a link to access theinspection report form.

FIG. 93 illustrates a view previous inspections screen that can beassociated with the view previous inspections task 302. A GC, owner,owner's representative, title company, or inspector can access the viewprevious inspections screen through the inspection module 58 of the drawmodule 44 and can select an inspection performed on a particular date.

FIG. 94 illustrates an approve draw request process 312, which can beincluded in the manage draw process 96. The approve draw request process312 can be used to confirm that the necessary inspections have beenperformed, to approve each draw in the construction payment process, andto issue lien waivers. The approve draw request process 312 can beperformed by a GC and/or any participant above the line of the GC (suchas the owner, the owner's representative, the title company, thearchitect, etc.) using the draw approval module 60 of the draw module44. Once the project has been initiated, the CPMS 10 can be used toapprove any type of payment associated with the construction process.The CPMS 10 can facilitate parallel approvals (e.g., both the GC and theowner must approve the draw) or a sequence of approvals (e.g., thearchitect must approve the draw, then the owner, then the lender). TheCPMS 10 can be used to configure the approval process for each project.The CPMS 10 can be used to approve change orders for the budget orparticular amounts contracted between parties. For example, the CPMS 10can be used to obtain approval from a GC and/or any participant abovethe line of the GC for a change order that exceeds a certain amount orto approve all change orders after a limit has been exceeded. Theapprove draw request process 312 can include an Authorize Draw RequestOne task 314, an Authorize Draw Request One—declined task 316, aninspections confirmed task 318, an inspection authorized task 320, apayment details modified task 322, an Authorize Draw RequestTwo—notification task 324, an Authorize Draw Request Two task 326, anAuthorize Draw Request Two declined task 328, an Authorize Draw RequestTwo approved task 330, and an issue lien waiver task 332.

FIG. 95 illustrates an Authorize Draw Request One form or authorizesworn statement form that can be associated with the Authorize DrawRequest One task 314. A GC, owner, owner's representative, or titlecompany can access the Authorize Draw Request One form through the drawmodule 44. The Authorize Draw Request One form can include the projectname, the project number, the owner, the project address, the drawnumber, and the draw date. The Authorize Draw Request One form caninclude any entry for each organization including the request amount,the organization name, the organization role, the budget item, thebudget amount, the payment amount, the holdback accrued, and theremaining balance. The Authorize Draw Request One form can include theauthorizations received, the authorizations outstanding, whether aninspection is required, the ability to enter a password forauthorization, and the ability to deny authorization and specify areason.

FIG. 96 illustrates an authorize first draw declined notification thatcan be transmitted during the Authorize Draw Request One—declined task316. The notification of FIG. 96 can include a statement that the drawfor a project has been denied authorization and a link to view and/ormodify the draw details.

FIG. 97 illustrates an inspection confirmed notification that can betransmitted during the inspections confirmed task 318. The notificationof FIG. 97 can include a statement that the draw scheduled for a projecthas been authorized and instructions to proceed with inspection of thesite, along with a link to view the details of the project and togenerate an inspection checklist.

FIG. 98 illustrates a payment details modified notification that can betransmitted during the payment details modified task 322. Thenotification of FIG. 98 can include a statement that the payment detailsfor a project for a draw have not been accepted. The notification canlist details of project participation and payments due for the draw,organization role, budget item, and payment amount.

FIG. 99 illustrates an inspection authorized notification that can betransmitted during the inspection authorized task 320. The notificationof FIG. 99 can include a statement that an on-site inspection for aproject has been authorized.

FIG. 100 illustrates an Authorize Draw Request Two notification that canbe transmitted during the Authorize Draw Request Two—notification task324. The notification of FIG. 100 can include a statement that therecipient is requested to check the inspection report entered for aproject, that the recipient's authorization is required before the drawcan proceed to the next phase (e.g., asking draw recipients for lienwaivers), and a link to view the inspection report and to grant or denyauthorization for the draw.

FIG. 101 illustrates an Authorize Draw Request Two form that can beassociated with the Authorize Draw Request Two task 326. A GC, owner,owner's representative, or title company can access the Authorize DrawRequest Two form through the draw approval module 60 of the draw module44. The Authorize Draw Request Two form can include the project name,the project number, the owner, the project address, the draw number, andthe draw date. The Authorize Draw Request Two form can include any entryfor each organization including the request amount, the organizationname, the organization role, the budget item, the budget amount, thepayment amount, the holdback accrued, and the remaining balance. TheAuthorize Draw Request Two form can include the authorizations received,the authorizations outstanding, whether an inspection is required, theability to enter a password for authorization, and the ability to denyauthorization and specify a reason.

FIG. 102 illustrates an Authorize Draw Request Two declined notificationthat can be transmitted during the Authorize Draw Request Two declinedtask 328. The notification of FIG. 102 can include a statement that thedraw scheduled for a project has been denied authorization by aparticipant and that the draw cannot proceed without this authorization.

FIG. 103 illustrates an Authorize Draw Request Two approved notificationthat can be transmitted during the Authorize Draw Request Two task 330.The notification of FIG. 103 can include a statement that a draw for aproject has been authorized by a participant.

FIG. 104 illustrates an issue lien waiver notification that can betransmitted during the issue lien waiver task 332. The notification ofFIG. 104 can include a statement that a draw scheduled for a project hasbeen authorized by a participant and that the recipient is requested toissue a lien waiver to receive payments for the draw, along with a linkallowing the recipient to issue a lien waiver.

FIG. 105 illustrates a change request process 334, which can be includedin the manage change order process 98. The change request process 334can be used to modify the overall project budget (generally to expandthe budget) by adding new line items, by changing existing line items,or by terminating subcontractors and making the remaining fundsavailable to other participants. The change request process 334 can beperformed by a GC, architect, owner, owner's representative, lender, orsubcontractor using the change order module 48. The change requestprocess 334 can include a change request task 336, a change requestissued task 338, and an authorize change request task 340.

FIG. 106 illustrates a change request form that can be associated withthe change request task 336. A GC or subcontractor can access the changerequest form through the change order module 48. The change request formcan include the project name, the project number, the project address,the owner name, and a list of the amounts to change. The list of amountsto change can include the change amount, the organization name, theorganization role, the budget item, the budget amount, the paymentamount, and the remaining balance. The change request form can include achange description field. The change request form can include whetherthe payment form is loan or owner payment, and whether the paymentmethod is loan, owner check, or credit card. The change request form caninclude the currently estimated completion date and a new estimatedcompletion date.

FIG. 107 illustrates a change request issued notification that can betransmitted during the change request issued task 338. The notificationof FIG. 107 can include a statement that a change request has beenissued on a project and is pending authorization. The notification caninclude the details of the change request, the organization name, thebudget item, the current budget amount, and the change amount.

FIG. 108 illustrates an authorize change request notification that canbe transmitted during the authorize change request task 340. Thenotification of FIG. 108 can include a statement that a change requesthas been issued on a project and that the recipient's approval isrequired for the change request. The notification can include a link toview the details of the change request, as well as to approve or declinethe change request.

FIG. 109 illustrates a process change request process 342, which can beincluded in the manage change order process 98. The process changerequest process 342 can be used to ensure that changes being made to thebudget are authorized by the appropriate participant, such as thearchitect, the lender, the title company, the owner, the owner'srepresentative, or the GC. The process change request process 342 can beperformed by a GC, architect, owner, owner's representative, lender, orsubcontractor using the change order module 48. The process changerequest process 342 can include a view pending change requests task 344,an authorize change request task 346, a change request declined task348, and a change request approved task 350.

FIG. 110 illustrates a view pending change request screen that can beassociated with the view pending change requests task 344. A GC,subcontractor, owner, owner's representative, lender, or architect canaccess the view pending change request screen through the change ordermodule 48. The view pending change request screen can include theproject name, the project number, the project address, the owner name,and a list of the amounts to change. The list of amounts to change caninclude the change amount, the organization name, the organization role,the budget item, the budget amount, the payment amount, and theremaining balance. The view pending change request screen can include achange description field. The view pending change request screen caninclude whether the payment method is loan, owner check, or credit card.The view pending change request screen can include the new estimatedcompletion date, the authorizations received, and the authorizationsoutstanding.

FIG. 111 illustrates an authorize change request form that can beassociated with the authorize change request task 346. A GC,subcontractor, owner, owner's representative, lender, or architect canaccess the authorize change request form through the change order module48. The authorize change request form can include the project name, theproject number, the project address, the owner name, and a list of theamounts to change. The list of amounts to change can include the changeamount, the organization name, the organization role, the budget item,the budget amount, the payment amount, and the remaining balance. Theauthorize change request form can include a change description field.The authorize change request form can include whether the payment methodis loan, owner check, or credit card. The authorize change request formcan include the new estimated completion date, the authorizationsreceived, and the authorizations outstanding. The authorize changerequest form can include the ability to enter a password and toauthorize the change request, and the ability to refuse the changerequest and enter a reason for the refusal.

FIG. 112 illustrates a change request declined notification that can betransmitted during the change request declined task 348. Thenotification of FIG. 112 can include a statement that a change requestissued on a date for a project has been declined by a participant.

FIG. 113 illustrates a change request approved notification that can betransmitted during the change request approval task 350. Thenotification of FIG. 113 can include a statement that a change requestissued on a date for a project has been approved by a participant (e.g.,a lender). Only a change request can be used to modify the overallproject budget (generally to expand the budget) by adding new lineitems, by changing existing line items, or by terminating subcontractorsand making the remaining funds available to other participants. The CPMS10 can be used to ensure that changes being made to the budget areauthorized by the appropriate participant, such as the architect, thelender, the title company, the owner, the owner's representative, or theGC. The notification of FIG. 113 can be transmitted when the appropriateparticipant has approved the change request.

FIG. 114 illustrates a change project participant process 352, which canbe included in the manage change order process 98. The change projectparticipant process 352 can be used, for example, to terminate onesubcontractor and to make the remaining funds available to anotherparticipant (such as a replacement subcontractor). The change projectparticipant process 352 can be performed by a GC or a subcontractorusing the change order module 48. The change project participant process352 can include a change participant task 354, a check participantdelete task 356, and a change affidavit task 358.

FIG. 115 illustrates a change participant screen that can be associatedwith the change participant task 354. A GC or subcontractor can accessthe change participant screen through the change order module 48. Thechange participant screen can include the project name, the projectnumber, the owner name, the project address, and the current status ofthe project. The change participant screen can include a list of theorganizations that can be changed. The list of organizations can includeorganization name, organization role, budget item, budget amount,payment amount, holdback accrued, remaining balance, and a link todelete each participant.

FIG. 116 illustrates a check participant delete screen that can beassociated with the check participant delete task 356. A GC orsubcontractor can access the check participant delete screen through thechange order module 48. The check participant delete screen can includethe project name, the project number, the owner name, the projectaddress, and information about the participant to be deleted (e.g.,organization name, organization role, budget item, budget amount,payment amount, holdback accrued, and remaining balance). The checkparticipant delete screen can include the ability to specify whether theparticipant has materially participated in the project.

FIG. 117 illustrates a change affidavit screen that can be associatedwith the change affidavit task 358. A GC or subcontractor can access thechange affidavit screen through the change order module 48. The changeaffidavit screen can include the project name, the project number, theowner name, the project address, the current status of the project, thebudget amount, the previously paid to date amount, the hold back to dateamount, and the remaining budget. The change affidavit screen caninclude a field to enter comments and the ability to enter a passwordand authorize the change in the affidavit.

FIG. 118 illustrates maintain project screens tasks 360, which can beincluded in the manage project process 94. The maintain project screenstasks 360 can be used to edit the project's profile, the contactinformation, and to close out a project. The maintain project screenstasks 360 can be performed by a GC, lender, owner, or owner'srepresentative using the project module 28. The maintain project screenstasks 360 can include a project profile task 362, a project contactinformation task 364, a project information task 366, and a closeproject task 368.

FIG. 119 illustrates a project profile form that can be associated withthe project profile task 362. A GC, lender, owner, or owner'srepresentative can access the project profile form through the projectmodule 28. The GC, lender, owner, or owner's representative can enterthe requested information, such as project information, project fundinginformation, project owner information, site information, and GCinformation.

FIG. 120 illustrates a project contact information screen that can beassociated with the project contact information task 364. A GC, lender,owner, or owner's representative can access the project contactinformation screen through the project module 28. The project contactinformation screen can include the project name, the projectidentification, the project address, and a list of contact informationfor the participants in the project. The list of contact information caninclude participant identification number, organization name,organization role, project manager name, contact email address, andcontact phone number.

FIG. 121 illustrates a project information screen that can be associatedwith the create project information task 366. A GC, lender, owner, orowner's representative can access the project information screen throughthe project module 28. The project information screen can includeproject information, site information, project owner information, and GCinformation.

FIG. 122 illustrates a close project screen that can be associated withthe close project task 368. A GC, lender, owner, or owner'srepresentative can access the close project screen through the projectmodule 28. The close project screen can include the project name, theloan account number, the owner name, and the ability to close theproject.

FIG. 123 illustrates manage access screens tasks 370, which can beincluded in the manage system environment process 102. The manage accessscreens tasks 370 can be used to customize the various screens displayedto particular users or organizations during the construction paymentprocess. For example, the manage access screens tasks 370 can be used toinclude an organization's trademark or logo on one or more of thescreens displayed during the construction payment process (e.g., alender's trademark can be included in the upper right corner of eachscreen). In addition, the manage access screens tasks 370 can be used tochange the layout of particular forms or screens according to thepreferences or requirements of particular users or organizations. Themanage access screens tasks 370 can be performed by any of theparticipants using the system environment manager 52. The manage accessscreens tasks 370 can include a log in task 372, a log out task 374, aproject home page task 376, a reset password task 378, a main screentask 380, a browse projects task 382, a forgot password task 384, and ayour password task 386.

FIG. 124 illustrates a log in screen that can be associated with the login task 372. Each participant can access the log in screen through theaccess manager 38. The participant can enter a user name and password tolog in. The log in screen can provide a link if a user forgets his orher password.

FIG. 125 illustrates a log out screen that can be associated with thelog out task 374. Each participant can access the log out screen throughthe access manager 38. The log out screen can confirm that the user hasbeen logged out.

FIG. 126 illustrates a project home page screen that can be associatedwith the project home page task 376. Each participant can access theproject home page screen through the access manager 38. The project homepage screen can include the project name, the number of new messages,and a link to read the new messages. The project home page can includeproject overview information (including a project schedule progress barand a funds disbursed progress bar), completed draws information(including draw number, draw date, and links to draw information),pending draw information (including draw number and started date). Theproject home page can include links to several actions, forms, orscreens (e.g., project profile, project budget, view projectparticipants, setup invoice codes, manage project users, title companyapproval tracking, initiate unscheduled draw, etc.).

FIG. 127 illustrates a reset password screen that can be associated withthe reset password task 378. Each participant can access the resetpassword screen through the access manager 38. The participant can enterthe new password twice in order to change the password associated with aparticular user name.

FIG. 128 illustrates a main screen for a particular user that can beassociated with the main screen task 380. Each participant can accessthe main screen through the access manager 38. The main screen can listthe projects that the participant is involved with, along with thenumber of new messages associated with each project and a link to readthe new messages.

FIG. 129 illustrates a browse projects screen that can be associatedwith the browse projects task 382. Each participant can access thebrowse projects screen through the access manager 38. The browseprojects screen can include a project search feature and a list ofprojects. The list of projects can include the project name, the GCname, a link to edit the project, and the ability to select one or moreprojects to browse.

FIG. 130 illustrates a forgot password screen that can be associatedwith the forgot password task 384. Each participant can access theforgot password screen through the access manager 38. A user can enterhis or her user name and email address, and the system can email thepassword to the user.

FIG. 131 illustrates a your password notification that can betransmitted during the your password task 386. The notification of FIG.131 can include a statement that you requested your password be emailedto you, the password, and a request to use the password the next timeyou log in.

FIG. 132 illustrates a manage message screens process 388, which can beincluded in the manage system environment process 102. The managemessage screens process 388 can be used to view messages, to createmessages, or to view a system status message. The manage message screensprocess 388 can be performed by any of the participants using the systemenvironment manager 52. The manager message screens process 388 caninclude a view message task 390, a view specific message task 392, acreate message task 394, and a status message task 396.

FIG. 133 illustrates a view messages screen that can be associated withthe view message task 390. Each participant can access the view messagetask 390 through the system environment manager 52. The view messagescreen can include the user's name, the ability to specify the type ofmessages that are displayed (e.g., unread, recent, all, sent messages,or archived), and a list of the type of messages specified. The list ofmessages can include the ability to select particular messages, themessage date, the project name, the message subject, and whether anaction is required. The view message screen can also provide the abilityto archive selected messages and move to another screen of messages.

FIG. 134 illustrates a specific message being viewed by a user. Thespecific message can include any one of the notifications shown anddescribed herein.

FIG. 135 illustrates a create/send messages screen that can beassociated with the create message task 394. Each participant can accessthe create/send message screen through the system environment manager52. A user can enter a project name, whether to send the message to anorganization or a user, the organization names, the user names, amessage subject, and a message.

FIG. 136 illustrates a status message screen that can be associated withthe status message task 396. Each participant can access the statusmessage screen through the system environment manager 52. The statusmessage screen can post messages, such as a statement that a draw hasbeen initiated for a project and that all participants have beennotified. The status message screen can include a link to anorganization or user home page.

FIGS. 137-153 illustrate a method of managing a construction paymentprocess according to another embodiment of the invention. Aspects of themethod of FIGS. 137-153 can be used in conjunction with the embodimentof the invention shown and described with respect to FIGS. 1-136 andFIGS. 154-179.

FIGS. 154-179 are input/output diagrams for a method of managing aconstruction payment process according to still another embodiment ofthe invention. Aspects of the method of FIGS. 154-179 can be used inconjunction with the embodiments of the invention shown and describedwith respect to FIGS. 1-136 and FIGS. 137-153.

FIG. 155 includes an open project task, a create draw schedule task, andan identify and assign project roles task, each of which can beperformed by a GC. An enter budget task can be performed by an owner,owner's representative, GC, lender, or title company. An update detailstask can be performed by a GC for subcontractors and/or materialsuppliers or by an owner, lender, or title company for any type ofparticipant. A close project task can be performed by a title company,GC, or lender.

FIG. 156 includes an enter project details task in which the system canassume that the project has full approval from all necessary agenciesand participating organizations before opening a project. FIG. 156includes an enter loan details in which the lender may choose to inputonly select information for legal or business reasons. If there is noloan for the project, no information is entered.

FIG. 157 includes a review proposed draw schedule task in which thesystem can generate a proposed draw schedule by equally spacing thenumber of draws across the estimated project schedule. FIG. 157 includesan accept or reject proposed draw schedule task in which a GC canmanually declare draws according to a schedule established by the owner,the owner's representative, the lender, or the GC. An automated schedulecan be rejected and the schedule can be manually maintained.

FIG. 159 includes an enter project budget for a participatingorganization in which a hierarchical process can be used. At each level,the participating organization can perform the process for theorganizations that they use to support them.

FIG. 160 includes an authorize change order task in which an issueresolution process may require rejection of an initial change order andcreation of a second change order that is mutually agreeable to allparties. Only a final change order in the resolution process must beapproved.

FIG. 162 includes an add organization task in which an organization mustbe added before it can participate in a project. The system, the titlecompany, the lender, or the GC can add organizations to the system.While organizations can be added during the identify and assign projectroles task of the maintain project payment plan process, organizationscan be added independently of that process. FIG. 162 includes an enterorganization details task in which the initial contact at anorganization can be responsible for entering their organization'sdetails and additional contact information. Each organization canidentify an internal system administrator who can be responsible forupdating their organization details and contact information. FIG. 162includes a maintain organization details task in which security can beparticularly stringent due to sensitive financial information.

FIG. 164 includes a verify organization task which can be provided by athird party based on the requirements of the participants. The systemcan facilitate the verification of organizations and charge a servicefee.

FIG. 166 includes a declare draw task that can be performed by a GC. Thedraw is the mechanism by which project participants can submit invoices,the owner (generally through the GC) can pay for work completed, andparticipating parties receive payment and release their associated lienwaivers. FIG. 166 includes a generate sworn statement task in which theGC can review the submissions on-line (referring to backup paperdocumentation when necessary) and once the submission is correct, thesystem can generate a sworn statement based on the information that hasbeen electronically submitted by the parties participating in the draw.The GC can reject submissions and they can be revised and resubmittedfor approval. This mechanism can be used to resolve any issues with theinvoice. FIG. 166 includes a request inspection task that can generallybe performed by the lender or the title company. FIG. 166 includes anauthorize draw task that can generally be performed by the lender, butmay require involvement of the owner, the owner's representative, oranother designated project participant. A configurable authorizationmechanism can include any project participant in the authorizationprocess. FIG. 166 includes an enter and stage lien waivers task whichcan be required to complete the draw. Funds are not transmitted to theinvoicing parties until their lien waivers are entered and staged. Thisrequirement ensures the substantially simultaneous execution of paymentand lien waiver release. FIG. 166 includes an execute simultaneouspayment/lien waiver release task in which the substantially simultaneousexchange of lien waiver for payment is automated. This automatedexchange can eliminate the need for meetings and can eliminate time lagsbetween payment and lien waiver release. This automated exchange canreduce the change that a lien waiver will be lost and can speed paymentto all draw participants by eliminating intermediate organizations fromthe payment process.

FIG. 167 includes an announce draw task in which an electronic messagecan be sent substantially simultaneously to all participating and/orinterested organizations.

FIG. 168 includes an enter invoice details task which can be executed byany party wishing to be paid through the draw process. The electronicsubmission can be followed by paperwork that supports the submission. Aservice can be provided that allows the parties to submit the supportinginformation via scanning.

FIG. 169 includes an authorize invoice task in which an issue resolutionprocess may require rejection of the initial invoice and creation of asecond invoice that is mutually agreeable to all parties. Only the finalinvoice in the resolution process will be approved.

FIG. 170 includes a select inspector task in which there may be morethan one inspector associated with a project. In this case, the correctinspector must be selected to perform the inspection.

FIG. 171 includes a confirm scope of inspection task in which theorganization requesting the inspection can define the scope of theinspection, either for the entire sworn statement or for a subset of thesworn statement. FIG. 171 includes an enter inspection results task inwhich supporting documentation may be necessary depending upon the scopeand nature of the inspection. FIG. 171 includes a forward supportingdocumentation task in which the system can allow files with digitalphotographs or other electronic material to be attached to theelectronic inspection reports.

FIG. 173 includes a stage lien waiver task in which the electronicsigned lien waiver can be staged in the system, secured from anyalterations. In one embodiment of the invention, the lien waiver is notreleased to the title company until the substantially simultaneousexchange of payments and lien waivers occurs.

FIG. 174 includes a confirm draw authorization and staged lien waiverstask which can include a review of all lien waivers to ensure they arecomplete and correct.

FIG. 178 includes a provide customer support task that can includesupport for adding or modifying organizations or projects, fixingpassword problems, fixing projects and transactions. FIG. 178 includes asystem administration task that can include security administration,financial auditing, and contingency support. FIG. 178 includes amaintain activity history for system participants task that can includea vendor directory with history about the vendors and/or ratings ofvendors.

It should be understood by one of ordinary skill in the art thatembodiments of the invention can be implemented using various computerdevices, such as personal computers, servers, and other devices thathave processors or that are capable of executing programs or sets ofinstructions. In general, the invention can be implemented usingexisting hardware or hardware that could be readily created by those ofordinary skill in the art. Thus, the architecture of exemplary deviceshas not always been explained in detail, except to note that the deviceswill generally have a processor, memory (of some kind), and input andoutput applications. The processor can be a microprocessor, aprogrammable logic control, an application specific integrated circuit,or a computing device configured to fetch and execute instructions. Insome cases, the devices can also have operating systems and applicationprograms that are managed by the operating systems. It should also benoted that although components of the CPMS 10 are shown connected in anetwork, no specific network configuration is implied. One or morenetworks or communication systems, such as the Internet, telephonesystems, wireless networks, satellite networks, cable TV networks, andvarious other private and public networks, could be used in variouscombinations to provide the communication links desired or needed tocreate embodiments or implementations of the invention, as would beapparent to one of ordinary skill in the art. Thus, the invention is notlimited to any specific network or combinations of networks.

Various features and advantages of the invention are set forth in thefollowing claims.

The invention claimed is:
 1. A construction payment management systemcomprising an application server including a processor and a computerreadable memory storing instructions that, when executed by theprocessor, cause the application server to: determine a date on which adraw is to occur for a construction project by automatically schedulingperiodic draws during the construction project; electronically generatea notification including an indication of the date on which the drawwill occur and an invitation to initiate a request for payment to beincluded in the draw, wherein the invitation to initiate a request forpayment includes a selectable link to an electronic form for receiving arequest for payment; determine a plurality of participants associatedwith the construction project to be notified of the draw; transmit thenotification to remote devices associated with the determined pluralityof participants; receive the request for payment through the electronicform from at least one participant of the determined plurality ofparticipants, wherein the at least one participant accesses theelectronic form by selecting the selectable link on an associated remotedevice; electronically initiate the draw on the determined date, whereinthe at least one participant of the determined plurality of participantsreceives a payment in the draw.
 2. The construction payment managementsystem of claim 1, wherein the instructions, when executed by theprocessor, cause the application server to determine a date on which thedraw is to occur by receiving an indication of the date from aparticipant associated with the construction project.
 3. Theconstruction payment management system of claim 1, wherein theinstructions, when executed by the processor, cause the applicationserver to determine the plurality of participants associated with theconstruction project to be notified of the draw by receiving a selectionfrom a first participant associated with the construction project of oneor more participants associated with the construction project to benotified of the draw.
 4. The construction payment management system ofclaim 1, wherein the instructions, when executed by the processor, causethe application server to determine the plurality of participantsassociated with the construction project to be notified of the draw byautomatically determining all participants associated with theconstruction project.
 5. The construction payment management system ofclaim 1, wherein the instructions, when executed by the processor, causethe application server to transmit the notification to the determinedplurality of participants substantially immediately after the date onwhich the draw is to occur is determined.
 6. The construction paymentmanagement system of claim 1, wherein the instructions, when executed bythe processor, cause the application server to transmit the notificationto the determined plurality of participants at a defined time periodbefore the draw is scheduled to occur.
 7. The construction paymentmanagement system of claim 1, wherein the at least one participant ofthe determined plurality of participants that receives a payment in thedraw includes a first participant, and wherein the instructions, whenexecuted by the processor, further cause the application server toreceive a request for payment from the first participant before the dateon which the draw is to occur.
 8. The construction payment managementsystem of claim 7, wherein the instructions, when executed by theprocessor, further cause the application server to transmit anotification to a second participant requesting approval of the requestfor payment received from the first participant.
 9. The constructionpayment management system of claim 8, wherein the instructions, whenexecuted by the processor, further cause the application server toreceive approval of the request for payment from the second participantbefore initiating the draw in which the first participant receives thepayment.
 10. The construction payment management system of claim 7,wherein the instructions, when executed by the processor, further causethe application server to receive an executed lien waiver from the firstparticipant before initiating the draw in which the first participantreceives the payment, the executed lien waiver corresponding to therequest for payment.
 11. The construction payment management system ofclaim 1, wherein the instructions, when executed by the processor, causethe application server to initiate the draw on the determined date bytransmitting an instruction to a payment source to initiate all paymentsto be included in the draw.
 12. A method of managing a payment processfor a construction project, the method comprising: determining a date onwhich a draw is to occur for a construction project by automaticallyscheduling periodic draws during the construction project;electronically generating a notification including an indication of thedate on which the draw will occur and an invitation to initiate arequest for payment to be included in the draw, wherein the invitationto initiate a request for payment includes a selectable link to anelectronic form for receiving a request for payment; determining aplurality of participants associated with the construction project to benotified of the draw; transmitting the notification to remote devicesassociated with the determined plurality of participants; receiving therequest for payment through the electronic form from at least oneparticipant of the determined plurality of participants, wherein the atleast one participant accesses the electronic form by selecting theselectable link on an associated remote device; electronicallyinitiating the draw on the determined date, wherein the at least oneparticipant of the determined plurality of participants receives apayment in the draw.
 13. The method of claim 12, wherein determining adate on which the draw is to occur includes receiving an indication ofthe date from a participant associated with the construction project.14. The method of claim 12, wherein determining the plurality ofparticipants associated with the construction project to be notified ofthe draw includes receiving a selection from a first participantassociated with the construction project of one or more participantsassociated with the construction project to be notified of the draw. 15.The method of claim 12, wherein the at least one participant of thedetermined plurality of participants that receives a payment in the drawincludes a first participant, and further comprising receiving a requestfor payment from the first participant before the date on which the drawis to occur.
 16. The method of claim 15, further comprising transmittinga notification to a second participant requesting approval of therequest for payment received from the first participant.
 17. The methodof claim 16, further comprising receiving approval of the request forpayment from the second participant before initiating the draw in whichthe first participant receives the payment.
 18. The method of claim 15,further comprising receiving an executed lien waiver from the firstparticipant before initiating the draw in which the first participantreceives the payment, the executed lien waiver corresponding to therequest for payment.
 19. The method of claim 12, wherein initiating thedraw on the determined date includes transmitting an instruction to apayment source to initiate all payments to be included in the draw.